User Account

All Pages

Calculate the issue price of the bonds

Assignment Help Accounting Basics
Reference no: EM132547468

Question - Whispering Ltd. sold $6,830,000 of 8% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 10%. Whispering's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Whispering bought back $2,830,000 worth of bonds for $2,730,000 plus accrued interest.

Required -

a. Using a financial calculator, or Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds.

b. Prepare the journal entry for the scheduled interest payment on September 1, 2020.

c. Prepare any year-end entry required at February 28, 2021.

d. Prepare the entry required for the redemption of face value $2,830,000 of the bonds on June 1, 2021.

Reference no: EM132547468

Questions Cloud

How much Jills net take home pay : Jill's employer contributes 9% of her gross pay to a superannuation fund on her behalf. How much Jill's net take home pay
How to calculate the cost per unit and the margin for the fb : How to Calculate the cost per unit and the margin for the FB and the TJ using activity base costing principles to absorb the overheads.
What does a butterfly kiss feel like : What does a butterfly kiss feel like? What sequence of neuronal events make this feeling happen?
Determine the amount of heat transferred : Water at uniform temperature of 20°C enters a 15 mm circular tubeat a rate of 9.5cm3/s. The tube wall is maintained at a constant temperature of 60°C.
Calculate the issue price of the bonds : Using a financial calculator, or Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds
Types of population growth models : Differentiate between the types of population growth models that can increase or decrease the elephant population.
How to make cost of good manufacture statement : How to Make Cost of Good Manufacture Statement? The Black Pepper Corporation desires to classify the cost and provides you the figure of trial balance
What strategic initiatives did hr implement to resolve : What strategic initiatives did HR implement to resolve the organizational issue or achieve the company's strategic goal? What behavioral competencies did HR.
What will cells synthesize : What will your cells synthesize if more than enough ATP is currently being produced?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd